Which of the Following Statements Characteristic of Leases

Which of the following statements characteristic of leases?

A) Lease agreements are not a popular form of financing the purchase of assets because leases require a large initial outlay of cash.
B) Accounting recognizes two types of leases-operating and finance.
C) If a lessor classifies a lease as a finance lease, the lessor records a lease liability on its income statement.
D) If a lease is classified as an operating lease, the lessee records an asset on its balance sheet.